8 Korean cable makers fined for price-fixing

2013-10-10 17:34

8 cable makers fined for price-fixing

By Kim Tae-jong
The nation’s anti-trust watchdog said Thursday it has imposed a combined fine of 6.2 billion won on eight major cable makers for price-fixing and decided to refer the case to the prosecution. The Fair Trade Commission (FTC) said eight cable manufacturers, including LS, LS Cable & System and Taihan Electric Wire, colluded to supply cables used in nuclear reactors at high prices. Read more of this post

Low loan margins are breaking the Korean banks

Low loan margins are breaking the banks

Oct 11,2013

Korean banks may close 2013 with their lowest profitability in four years as the rate cuts from the central bank, which meant to stimulate Asia’s fourth-biggest economy, squeeze loan margins further. Three rate decreases by the Bank of Korea since July 2012 have left borrowing costs near a three-year low and average net interest margin for lenders, including Shinhan Financial Group, at the lowest since 2009, according to Financial Supervisory Service data.

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The world of government officials in Korea is so closed that lobbying and corruption are becoming rampant

9 of 10 officials get plush private-sector landings

The most popular destination for the former officials was Samsung.

Oct 11,2013

BY SONG SU-HYUN, KIM KYUNG-HEE [ssh@joongang.co.kr]

The world of government officials in Korea is so closed that lobbying and corruption are becoming rampant, according to a lawmaker’s analysis that found about 93 percent of 1,362 high-ranking former government officials have been employed by the private sector since 2009. In Korea, when retired public servants want to work, they have to get approval from the Government Public Ethics Committee. Read more of this post

The gated globe: Governments are putting up impediments to globalisation. It is time for a fresh wave of liberalisation

The gated globe: Governments are putting up impediments to globalisation. It is time for a fresh wave of liberalisation

Oct 12th 2013 |From the print edition

IMAGINE discovering a one-shot boost for the world’s economy. It would revitalise firms, increasing sales and productivity. It would ease access to credit and it would increase the range and quality of goods in the shops while keeping their prices low. What economic energy drink can possibly deliver all these benefits? Globalisation can. Yet in recent years the trend to greater openness has been replaced by an enthusiasm for building barriers—mostly to the world’s detriment. The worst did not happen… Read more of this post

Defining class in Mexico: Politicians and statisticians hunt for the middle class

Defining class in Mexico: Politicians and statisticians hunt for the middle class

Oct 12th 2013 | MEXICO CITY |From the print edition

IN THE hallowed name of the middle class, Mexico’s politicians have been doing a lot of huffing and puffing lately. The source of their indignation is the president’s plan to raise income tax on annual salaries over 500,000 pesos ($38,000) and impose value-added tax on private schooling and mortgage payments. That, the people’s representatives complain, would beat the stuffing out of ordinary, hard-working families, so they plan to spare them the tax on schooling and housing.

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M&A in China are expected to enter a new stage of development with regulations implemented October 8 aimed at streamlining approval procedures

10.10.2013 17:20

New M&A Rules Bring Cautious Optimism

Industry analysts hope to see pickup in speed for regulatory approvals but raise concerns over certain preconditions for qualified companies

By staff reporters Liu Ran and Zheng Fei

(Beijing) – Mergers & acquisitions in the country are expected to enter a new stage of development with regulations implemented October 8 aimed at streamlining approval procedures. The policy allows qualified listed companies planning an M&A to skip a long list of compliance checks to receive fast-track approval from the China Securities Regulatory Commission (CSRC). Read more of this post

At Risk: Currency Privilege of the Dollar; The United States has the credibility to borrow from foreign investors in a currency it can print and under laws it can change, but a default could jeopardize that

October 10, 2013

At Risk: Currency Privilege of the Dollar

By FLOYD NORRIS

Not all government debt is created equal. Some governments get a much better deal than others, and no one gets a better deal than the United States. The United States borrows in its own currency, and it borrows at extremely low interest rates. It also borrows under its own laws, an often overlooked advantage. Such a situation makes default — or at least involuntary default — impossible because the government can print dollars if need be. The value of the dollars it repays may be less than the value of the dollars it borrows, but that is a risk the lenders accept. The United States could change its laws, but it is trusted not to abuse that right. Read more of this post

Wal-Mart’s Other Path to Indian Consumers; Wal-Mart’s decision to shelve its retail ambitions in India doesn’t mean it can’t tap into that country’s burgeoning consumer market

October 10, 2013, 11:46 a.m. ET

Wal-Mart’s Other Path to Indian Consumers

ABHEEK BHATTACHARYA

Wal-Mart Stores‘ WMT +2.45% problems in India have so far been a byword for the emerging economy’s perils. But to some extent, its latest move in India suggests one area of promise. The world’s largest retailer by sales became Indian politicians’ favorite punching bag two years ago, when New Delhi decided to keep foreign retailers away to protect mom-and-pop stores. Even after foreigners were let into this sector last year, the government imposed protectionist restrictions on sourcing goods. Read more of this post

India markets regulator looks to revive REITs, issues draft guidelines

India markets regulator looks to revive REITs, issues draft guidelines

Thu, Oct 10 2013

(Adds details on proposed rules)

MUMBAI, Oct 10 (Reuters) – India’s capital markets regulator on Thursday issued draft guidelines to set up real estate investment trusts (REITs) in the country, reviving an effort it had put on hold in 2008 during the global financial crisis. REITs are tax-efficient listed entities that mainly invest in income-producing real estate assets from which most of the earnings are distributed to their shareholders. Read more of this post

Squandering America’s Debt Advantage; Even if the Debt-Ceiling Crisis Is Resolved, Washington Could Have Tarnished One of Its Most Valuable Assets

Updated October 10, 2013, 8:14 p.m. ET

Squandering America’s Debt Advantage

Even if the Debt-Ceiling Crisis Is Resolved, Washington Could Have Tarnished One of Its Most Valuable Assets

SPENCER JAKAB

Testifying to Congress on Thursday about the debt ceiling, Treasury Secretary Jack Lew stressed that American politicians throughout history “have universally understood the importance of protecting one of our most precious assets, the full faith and credit of the United States.” Despite recent theatrics, it is a safe bet that most of today’s political leaders understand it, too. On Thursday, Washington appeared closer to a resolution, although that remained uncertain, to the political crisis that threatened to force the U.S. to default on its debt. Read more of this post

Sotheby’s, Christie’s Square Off in Test of Strategies; Christie’s Seeks Less Wealthy Customers, While Sotheby’s Targets Millionaires

Sotheby’s, Christie’s Square Off in Test of Strategies

Christie’s Seeks Less Wealthy Customers, While Sotheby’s Targets Millionaires

KELLY CROW, SARA GERMANO and DAVID BENOIT

Updated Oct. 10, 2013 7:51 p.m. ET

For two centuries, the world’s chief auction houses— Sotheby’s BID +1.75% and Christie’s International—have shined a spotlight on everything from pricey vases to Van Goghs. But now, it’s the houses’ own strategies that are getting a closer look. An assault on Sotheby’s management by its largest shareholder, hedge fund Third Point LLC, has called attention to the sharp differences in how the two longtime rivals have gone about boosting sales and their bottom lines. While Christie’s is branching out to appeal to less wealthy people who may prefer to bid for art over the Internet, Sotheby’s has refocused on catering to the millionaires who make up its core customer base. Read more of this post

Top global hedge fund Brevan Howard takes emerging markets hit

Top global hedge fund Brevan Howard takes emerging markets hit

6:12pm EDT

By Matthew Goldstein, Jennifer Ablan and Katya Wachtel

NEW YORK (Reuters) – Brevan Howard Asset Management LLP, one of the world’s largest hedge fund firms with $40 billion in assets, is posting lackluster performance in its flagship fund and heavy losses in its emerging market portfolio. Two people familiar with the numbers said on Thursday that the flagship, the roughly $28 billion Brevan Howard Master Fund, is virtually unchanged for the year as of October 4. The portfolio, the firm’s largest and making macro economic bets, was up about 3.8 percent as of the end of June but has been declining since. Read more of this post

Costs for European chocolatiers have jumped almost a third in the past year because of a surge in key ingredient prices, raising prospects of a further squeeze in margins

Last updated: October 10, 2013 10:56 pm

Chocolatiers face bitter Christmas as cocoa surges

By Emiko Terazono in London

Costs for European chocolatiers have jumped almost a third in the past year because of a surge in key ingredient prices, raising prospects of a further squeeze in margins in a supply scramble ahead of Christmas, Valentine’s day and Easter. Cocoa butter, which provides the melting quality in chocolate, surged almost 70 per cent in the year to August, while milk powder jumped 50 per cent, leading to a 31 per cent rise in the cost of making a bar of milk chocolate, according to commodity data specialists Mintec. Read more of this post

The appeal against convictions in a landmark corruption case is a test for Brazil; green brooms have been used as symbols of protest against political corruption in Brazil

October 10, 2013 7:17 pm

Brazil: Given the brush-off

By Joe Leahy

The appeal against convictions in a landmark corruption case is a test for the country

Copacabana clean-up: green brooms have been used as symbols of protest against political corruption in Brazil

Covered in tattoos, trucker Edilson da Silva is not one to hold his tongue. But even he has to be careful what he says when it comes to the São Paulo state police. Highway officers impounded his removal truck last Saturday in a remote rural outpost on the state’s coastal road because of a problem with a document. “I do the talking here,” one officer barks when Mr da Silva tries to complain that he is being given the wrong information repeatedly about the procedure to “liberate” the truck. It is Wednesday and he is on day five of his quest. The costs mount – lost income, the fee charged for each day the truck remains in the compound and transport to and from the police post – and then there is the fear of being asked for a bribe. Read more of this post

As Jakarta MRT Breaks Ground, Hopes for Reliable Public Transport Rise

As Jakarta MRT Breaks Ground, Hopes for Reliable Public Transport Rise

By Lenny Tristia Tambun & SP/Hotman Siregar on 3:40 pm October 10, 2013.

Governor Joko Widodo officiated the ground-breaking ceremony for the city’s mass rapid transit system on Jalan Tanjung Karang in Dukuh Atas, Central Jakarta, on Thursday morning, ushering in a new era of public transport for a city plagued by gridlock. “Bismillah ir-Rahman ir-Rahim [In the name of Allah, the most beneficent and the most merciful], I declare the MRT groundbreaking to start,” he said at the location. Read more of this post

Singapore capitulates to special inteest group and do not go the way of Australia and the UK to ban product commissions altogether

PUBLISHED OCTOBER 11, 2013

EDITORIAL

Advisers must earn their commissions

FINANCIAL advisers would have heaved a sigh of relief at the Monetary Authority of Singapore’s response to the consultation exercise on the Financial Advisory Industry Review (FAIR) recommendations. Since the FAIR panel convened last year, there was much speculation on whether Singapore would go the way of Australia and the UK to ban product commissions altogether. The regulator’s response to public feedback is measured, clearly seeking to strike a balance between maintaining the viability of an industry where thousands of advisers rely on commissions for their livelihood, and yet seeking to protect retail investors’ interests. The fact that not all the FAIR panel’s recommendations were accepted testifies to just how challenging the balancing act has been – and remains so. Read more of this post